Wal-Mart de México, S.A.B. de C.V. (BMV:WALMEX) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Wal-Mart de México, S.A.B. de C.V. (BMV:WALMEX) shareholders are probably feeling a little disappointed, since its shares fell 3.9% to Mex$61.38 in the week after its latest second-quarter results. It looks like the results were a bit of a negative overall. While revenues of Mex$227b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.8% to hit Mex$0.72 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Wal-Mart de México. de

Taking into account the latest results, the most recent consensus for Wal-Mart de México. de from 15 analysts is for revenues of Mex$963.4b in 2024. If met, it would imply a satisfactory 4.8% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 5.1% to Mex$3.27. In the lead-up to this report, the analysts had been modelling revenues of Mex$967.1b and earnings per share (EPS) of Mex$3.28 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of Mex$76.88, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Wal-Mart de México. de analyst has a price target of Mex$85.00 per share, while the most pessimistic values it at Mex$58.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Wal-Mart de México. de's growth to accelerate, with the forecast 9.8% annualised growth to the end of 2024 ranking favourably alongside historical growth of 7.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.3% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Wal-Mart de México. de to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Wal-Mart de México. de going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Wal-Mart de México. de .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com